This chapter examines the conditions under which foreign aid will be effective in raising
growth, reducing poverty, and meeting basic needs in areas such as education and health …

In the past three decades, developing countries have made significant economic and social
progress, from improved infant mortality rates to higher life expectancy. Yet, 1.3 billion …

This paper presents a dynamic macroeconomic model that captures key linkages between
foreign aid, public investment, growth, and poverty. Public capital is disaggregated into …

This paper studies the impact of aid volatility in a two-period model where production may
occur with either a traditional or a modern technology. Public spending is productive and …

The paper develops a theoretical framework for understanding the mechanism through
which foreign aid affects macroeconomic performance. The authors find that the long‐run …

This paper studies the allocation of public expenditure between infrastructure investment
and maintenance in an endogenous growth framework. In the basic model, maintenance …

We use a multi-sector dynamic stochastic general equilibrium (DSGE) model—calibrated to
the Ghanaian economy—to analyse the short-term impact of oil windfalls in low-income …

This research examines the relationship between economic sanctions and income
inequality of sanctioned states. Economic sanctions have a discernible effect on target …

A great deal of the foreign aid–growth literature finds that the net effect of aggregate aid on
total growth appears to be insignificant. This study argues that this aid–growth nexus can be …

The present paper examines the macroeconomic impact of aid, by introducing endogenous
aid allocations into a neoclassical growth framework. On this basis it is shown that donor …